There's a massive wildcard in the US-Canada trade war coming this November
The US and Canada are engaged in a deepening trade war, with new tariffs impacting billions in exports and threatening to increase inflationary pressure. President Trump has threatened to double tariffs on Canadian automobiles and parts by 2027 to force supply chain shifts.
Why it matters
The trade dispute poses risks to the North American automotive industry and complicates the Federal Reserve's monetary policy decisions regarding interest rates.
Dave Chan/AFP via Getty Images; Jim Watson/AFP via Getty Images This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here . The dog days of summer don't mean the US and Canada are easing up their trade war. After talks between the sides fell apart, more tariffs were enacted or threatened over the weekend and on Monday . BI's Kelsey Vlamis and Truman Dickerson have a list of some of the more popular products that have recently been hit with 50% tariffs. (Apologies, hockey players.) The latest tariffs affect about 5% of all Canadian exports to the US, totaling about $20 billion. That's not enough to immediately plunge the US economy into chaos, but it will deeply impact the industries the new levies target. Meanwhile, Canadians don't seem to mind the rivalry heating up again.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in